Wednesday, 27 February 2013

Telecom startup sends another price-cutting signal

The company that tried but failed to break the state monopoly on SIM cards in Myanmar last year now plans to make cell phones here through a joint venture with an unnamed foreign partner, a spokesman for the company told Eleven Media.
Shwe Pyi Tagon Company also registered itself as a public company on January 8 and will start selling shares to the public at an undisclosed date in the future, spokesman Lwin Naing Oo said.


“We have formed as a public company so that all citizens can have a share. In the future, we will set up a factory and manufacture mobile handsets through a joint venture with a foreign company,” he said.

It will announce the date of its share sale in newspapers, he said.

Last year the company gained national attention after announcing that it would challenge the state monopoly on SIM cards by selling them at US$6 apiece, or about 100 times lower than the price charged by state-controlled vendors.

The move was blocked but the price of SIM cards was subsequently halved following rising public anger at the high price of signing up for mobile service here.

Strong public support for the company prompted its decision to turn itself into a public company, Lwin Naing Oo said.

The price of mobile handsets is expected to fall as state-run companies are also rumoured to be planning to sell low-cost handsets soon.
 
source: Eleven Myanmar

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